To really take advantage of the benefits of a refinance, it’s important to time it correctly. Here are a few ways to know if the timing is right:
If you have a fixed rate mortgage and the rates have fallen to levels below the rate that you are paying.
If you have an A.R.M. and rates are starting to rise.
If you are less than ten years into your current 30-year mortgage and rates are lower than what you are paying now. If have been paying your mortgage for longer than that, you are currently paying more principal than interest. If you get a new mortgage, you start the cycle over again and will be paying mostly interest again, which may not make sense.
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